PHILADELPHIA (KYW Newsradio) — Jefferson Health, Philadelphia’s second-largest employer, is laying off more than 400 workers and eliminating several vacant positions.
Jefferson Health said it will be laying off approximately 1% of its workforce — more than 42,000 — due to a drop in patients and the rising cost of care.
Most of the people being laid off are in corporate and administrative roles. It is not yet clear if medical staff will be affected.
Employees received an email from Jefferson Health on Monday saying it is scaling back its workforce by 1%, which would leave more than 420 people out of work.
It is not clear when these layoffs would go into effect.
The hospital network called it a difficult but necessary decision, saying it needs to make this change now to ensure it will remain sustainable in the future.
“This decision was not made lightly,” CEO Joseph Cacchione said in a statement, “and Jefferson is not alone in needing to make this challenging choice. As has been widely reported, there are incredible financial pressures on healthcare and higher education organizations across the country. There are decreased patient volumes at the same time as double-digit increases to costs, and the economic models that support many payer-provider relationships do not yet reflect all the ways the environment is changing.”
The health system runs 18 hospitals throughout Pennsylvania and South Jersey.
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